“Hoosiers are hurting from an excessive property tax burden. As your next Governor, I have a plan to provide much-needed relief,” Braun said on X, formally known as Twitter.
To better understand Braun’s proposal, it is important to note that Indiana's property tax system differs from typical tax systems where rates are set first.
With property taxes in Indiana, the state figures out how much you owe by starting with the value of your property. Then it subtracts any deductions you qualify for, like having someone under the age of 18 living there or being a senior. After that, it decides the tax rate.
Right now, Indiana employs property tax caps, which limit the total taxes based on property market values.
Braun’s proposal includes increasing deductions and exemptions, which is intended to help some homeowners with burdens that come with owning residential property.
Justin Ross, from Indiana University’s O’Neill School of Public and Environmental Affairs, says “Anybody who is not [a residential homeowner] is going to have a higher tax bill as a result. So there's some amount of trade off.”
Another point of Braun’s proposal is to introduce a cap on annual tax bill increases. He wants future tax increases to be capped annually at 2% for seniors, low-income Hoosiers and families with children under the age of 18. All other homeowners would be capped annually at 3%.
But what does that actually mean?
Ross explains: “Instead of making it dependent on the type of property you have, Braun’s point is to make it dependent on the characteristics of the person.”
Braun is also seeking changes to referendum approvals for tax increases exceeding caps, aiming for broader community involvement and approval.
His final main proposal is the creation of a "Property Tax Transparency Portal" where homeowners can compare their current tax bill with new versions.
The Indiana Democratic Party believes Braun’s plan threatens “the fiscal wellbeing of localities and communities across the state,” it said in a statement.
"Hoosiers deserve real relief from rising property taxes, not gimmicks that would balloon local deficits, endanger local services, and suffocate Indiana's housing market," said Indiana Democratic Party Chair Mike Schmuhl. "From cutting care for our most vulnerable children to watching property taxes soar for seniors without immediate action, Indiana Republicans are proving they are not the party of fiscal responsibility.
"It's time to break their supermajority hold on the state legislature and elect Jennifer McCormick as our next governor for property tax reform that protects public schools, keeps seniors in their homes, and ensures resilience for local services."
“Property taxes are a primary source of funding for local government units,” according to the Department of Local Government Finance, paying for libraries, police and fire services, highways and roads, and much more.
The DLGF offers detailed information about Indiana property taxes in its Citizen's Guide to Property Tax, here.